A consortium led by Italian billionaire Andrea Bonomi is being tipped as the favourite in a long-running bidding battle for Club Med with an offer worth €874 million.
His Global Resorts offered to pay €23 per share for the all inclusive resorts operator, topping a competing bid by Gaillon Invest, including China’s Fosun International and minority partners, that valued the company at €839 million.
Global Resorts is working with investment firm Kohlberg Kravis Roberts to make the improved offer.
It did not disclose how much KKR was investing in its role as a minority partner in the bid. KKK confirmed its participation as a “minority co-investor” but declined to give details.
The Italian, whose interests include stakes in the PortAventura theme park in Spain, revealed that he and his partners had also lifted their stake in the French holiday village operator from 11% to 15.9%, with an option to raise it further to 18.9%, just short of the 20% held by Gaillon.
The bidding consortium also includes South African hotelier Sol Kerzner and Serge Trigano, a former chief executive of Club Med and son of the founder. GP Investments, a Brazilian hotel owner, is also backing the Italian. Bonomi plans to appoint Trigano as chairman if his latest offer is successful, The Times reported.
Club Med, which runs 70 villages around the world, first attracted interest from Fosun in 2010 when the Chinese group took a 10% stake and agreed a deal to open a first Club Med resort in China, in Guilin.
Fosun and Axa Private Equity – now renamed Ardian – launched a €17-a-share offer in May last year with backing from management under chief executive Henri Giscard d’Estaing.
The bid was held up as minority shareholders opposed the takeover and Gaillon was forced to raise its offer to €17.50 a share, The Times reported.
Bonomi launched a counter offer worth €21 a share in June, only to see Gaillon trump him with a €22 offer.
Gaillon Invest includes Hong Kong-based conglomerate Fosun International, French private equity firm Ardian and Chinese ravel company U-Tour.